Infosys Technologies Ltd
) reported fourth quarter and fiscal 2014 results. Quarterly
earnings per ADS from continuing operations came in at 85 cents,
surpassing the Zacks Consensus Estimate of 79 cents by 7.6%.
Quarterly earnings were up 9.0% year over year and 4.9%
sequentially. Profits during the quarter were primarily driven by
the company's differentiating strategy to capture potential
opportunities and strategic organizational changes.
During the quarter, total revenue generated was $2.1 billion,
up 7.9% year over year but marginally down 0.4% sequentially. The
company witnessed volume growth, client additions, large deal
wins and increased sales momentum in its big data and cloud
The company added a total of 50 clients and also formed
partnerships with clients to create innovative solutions across
the mobile device during the quarter. Further, Infosys signed
large outsourcing agreements across various sectors such as
Energy, Communications, Financial Services, Government and
Healthcare. In addition, the company was chosen as a strategic
supplier to provide application development services for its
global operations by Volvo Cars.
Revenue by Geographical Segment
During the reported quarter, Infosys reported strong
year-over-year growth in geographic revenues. Revenues from North
America grew 59.8% followed by Europe, where revenues increased
25.2%. Coming next in the line is Rest of World with revenue
growth of 12.4%, followed by India with 2.6% growth.
Revenues by Industry Segment
Revenues in the Insurance, Banking and Financial services
(IBFS) grew 33.5% while the Manufacturing segment (MFG) revenues
grew 23.0%. Revenues from the Retail and Life Sciences division
(RCL) grew 23.8% while revenues in Energy, Utilities,
Communications & Services (ECS) grew 19.7% year over
The company recorded an operating profit of $534 million
compared to $457 million in the prior-year quarter, reflecting an
increase of 16.8% year over year. However, the operating margin
expanded 194 basis points year over year to 25.5% from 23.5% in
the comparable prior-year quarter. Net profit after tax was $487
million for the quarter, up 9.7% year over year.
Infosys maintains a strong liquidity position, had cash &
cash equivalents of $4.3 billion as of Mar 31, 2014 compared to
$4.0 billion as of Mar 31, 2013.
Concurrent with the earnings release, management provided
outlook for fiscal 2015. Revenues are expected to increase in the
range of 7% to 9%.
Infosys currently has a Zacks Rank #4 (Hold). However,
investors interested in the IT sector can also consider stocks
). CDW has a Zacks Rank #1 (Strong Buy) while Accenture and Ansys
have a Zacks Rank #2 (Buy).
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INFOSYS LTD (INFY): Free Stock Analysis
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